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NEW YORK (TheStreet) -- Can the market honestly be this stupid? That was the question Jim Cramer asked on Mad Money Wednesday after the markets once again rallied on an uptick in bond interest rates.

Cramer called this new relationship between bonds and stocks "moronic," saying higher interest rates are bad for consumers and bad for the markets, not the other way around. Yet, those who fear recession continue to think low interest rates will take us there and thus were celebrating on today's rise in rates.

Just as the markets took its cues Tuesday from the weak sales of Staples(SPLS) and Dick's Sporting Goods(DKS), today, as if with amnesia, the markets celebrated strong earnings from Tiffany(TIF) and Target(TGT).

Cramer said there's simply no data suggesting that a recession, or even a slowdown, is imminent. Lowe's(LOW) confirmed what Home Depot(HD) said earlier this week -- sales have been robust in May, and that's a good sign for all.

Cramer said the bears will eventually be trampled by the bulls. Until then, more upside-down days like today are likely.

Spectacular Shale

In what has become one of the most amazing moves he's ever seen, Cramer said the North American energy revolution continues to deliver. Fueled by rising oil prices and perpetually rising production, the oil shale renaissance has been nothing less than spectacular.

Oil shale drilling has become more profitable than even the industry could have imagined just two years ago, Cramer continued. While it may only cost $2.5 million to drill a conventional oil well, the $7.5 million price tag of a horizontal well is averaging $8.4 million in cash flows in just its first year alone.

Cramer said EOG Resources(EOG) and Anadarko Petroleum(APC), a stock he owns for his charitable trust, Action Alerts PLUS, remain his two favorites among the group. Anadarko in particular, he noted, is worth at least $120 a share on its production growth alone. The company is also a ripe takeover target for larger drillers.

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